Modernisation of border management systems: ADB approves USD400m regional financing facility

ISLAMABAD: Pakistan is set to benefit from a USD 400 million Asian Development Bank (ADB) regional facility to modernise border crossings and cut the mounting time and costs of moving goods and people across the Central Asia Regional Economic Cooperation (CAREC) trade corridors. The ADB has approved a USD 400 million regional financing facility to modernise border crossing points, lower transport and logistics costs, and improve the movement of people and goods across the CAREC region. According to project details, the facility comprises USD 320 million in ordinary capital resources and USD 65 million in concessional ordinary capital resources lending, along with a USD 15 million grant, bringing the aggregate approval limit to USD 400 million. READ MORE: ADB likely to back Pakistan border infrastructure upgrade The facility will finance qualifying small-value BCP projects, with ADB financing capped at USD 50 million per project, over a 10-year implementation period. The arrangement is designed to streamline project approval and enable faster responses to demand from participating countries. The Border Upgrades for Integration, Logistics, and Development (BUILD) facility will support priority investments to modernise border crossing points and strengthen connectivity and competitiveness across the CAREC region. “Borders are not just checkpoints. These are gateways to create jobs, regional markets, and income opportunities, ” said ADB Director General for Central and West Asia Leah Gutierrez. “Through the BUILD Facility, ADB will help CAREC countries create faster, smarter, and more connected borders, cut inefficiencies by bringing economies closer, expanding cross-country markets and economic corridors, thereby improving the lives of millions of people across the region. ” Despite recent progress in trade and transport connectivity, border crossing points remain bottlenecks across CAREC corridors due to growing trade volumes, infrastructure and capacity constraints, and the need for further modernisation of border management systems and procedures. These constraints bring economic losses and hardships for transport operators, traders, and passengers and increase the risks of human trafficking, environmental issues, and public health concerns. The BUILD will finance priority border investments across CAREC countries, including upgrades to rail and road border crossing points. The facility will support modern infrastructure, digital systems, high-tech inspection and screening equipment, and more efficient and harmonised border procedures to reduce border crossing times and costs. The BUILD will also strengthen institutional capacity, support transport and logistics reforms, and promote greater private sector participation. The BUILD will also create opportunities for private sector investment and strengthen the capacity of micro, small, and medium-sized enterprises as well as major players in agriculture, tourism, and transport services to participate in regional trade. Copyright Business Recorder, 2026

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